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Ethereum is expected to reach up to $5,000 by the end of the year

Many cryptocurrency fans predict that Ethereum will outperform Bitcoin in the long run to become the largest cryptocurrency in the world. According to a Coinedition report, the latest research from OKX says that up to 63% of respondents expect a price of $5,000 already this year. Is this growth real?

Shanghai hard fork

The research results come amid the expected Shanghai hard fork, which is scheduled for April 12. Thanks to EIP-4895, it will allow both validators and stakers to withdraw their staked ETH from the Beacon Chain. In addition, the update will bring an increase in the speed of transactions and a decrease in transaction fees.

This event is absolutely significant for the price development of ethereum in the near future. The maximum daily withdrawal of 50,400 ETH will enable the sale of up to 90 million per day in order to realize profits. On the other hand, the market is not in a bullrun, and on the contrary, everyone expects the cryptocurrency market to appreciate in the coming months. This could ultimately ease selling pressures.

Ethereum in the accumulation phase

According to data from TradingView, the market price of Ethereum at the time of writing is at the price level of $1,836. This means that reaching $5,000 requires an uptrend of 172% strength from the current value.

In November 2021, ethereum almost reached the level of $5,000 and recorded an all-time high of $4,868. The world's largest altcoin is highly correlated with Bitcoin, with a correlation of 0.90 according to data from Coinmetrics. In other words, as bitcoin moves, so will ethereum.

The cryptocurrency market is in an accumulation phase, which always occurs after a long-term correction. After accumulation, we should see an increase in demand and growth. Additionally, the halving cycle suggests that Bitcoin should be largely bullish in the coming year.

According to CoinMarketCap, ethereum has a market capitalization of $221.2 billion, which is $318 billion less than bitcoin. The daily trading volume is worth 5.4 billion dollars.

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Discussion

NakamotoX 2y ago

Well, my friend, it's always hard to predict the future of the cryptocurrency market with certainty. However, it's true that the upcoming Shanghai hard fork for Ethereum could have a significant impact on its price development in the near future, as well as the overall cryptocurrency market. The increase in transaction speed and decrease in transaction fees that the fork will bring should be positive developments for Ethereum, and the ability for both validators and stakers to withdraw their staked ETH from the Beacon chain should also be a good thing for the Ethereum ecosystem.

As for the price prediction of $5,000 for Ethereum by the end of the year, this is certainly possible given the current market conditions, but it is by no means guaranteed. We are still in a phase of accumulation, which means that demand and growth may increase in the near future, but it's impossible to know for sure. Additionally, while Ethereum is highly correlated with Bitcoin, it is still its own unique asset with its own set of price drivers and factors.

Overall, I believe that the cryptocurrency market has tremendous potential and that Ethereum has a strong position as one of the leading players in this space. However, I recognize that there are still risks and uncertainties, and that we must remain vigilant and thoughtful in our approach to investing and development in this field.

Black Canvas NFT 2y ago

I have to agree with what you write, my friend. So let's be surprised.